From tokenisation of cards to nominations while investing in National Pension System and mutual funds to charges introduced for paying rent using credit cards, a lot is happening in October. Here is what you need to watch out for.
Government employees may prefer the old pension scheme because of assured payouts and family pension but question marks over its feasibility cannot be wished away, experts say
Allocation to midcap stocks aside, tax benefits under Section 80C and Subsection 80CCD (1B) also make National Pension System attractive
Is NPS a better alternative to EPF after tax on interest on contribution over Rs 2.5 lakh? Market-linked returns may seem attractive, but on the flipside, maximum lump-sum withdrawal of 60 percent of retirement corpus, with the rest being converted into annuities, is a limitation.
Corporate sector model too sees a sharp rise of 42.13 percent in NPS contributions.
NPS gives a lot of flexibility, but the only thing is that a person has to start early, said the chairman of the Pension Fund Regulatory and Development Authority (PFRDA).
Most of the stocks have been present in the portfolios since their inception
The total pension assets under management stood at Rs 6,16,517 crore as on June 30, showing a yearly growth of 32.67 percent, the Pension Fund Regulatory and Development Authority (PFRDA) said.
The regulator also plans to allow subscribers who join after 60 years of age to continue their NPS accounts till 75.
National Pension System and Employee Provident Fund, both the retirement options are overseen by the government but they differ from each other on various parameters. So, which one is better? And how much money can one withdraw upon reaching the retirement age? Watch the video to find out
The number of subscribers under the National Pension System and Atal Pension Yojana increased by 21.67 percent to 397.70 lakh ending December 31, 2020, as against 326.86 lakh in December 2019.
During the period, nearly 1.03 lakh individual subscribers from the private sector and 206 corporates were enrolled, Pension Fund Regulatory and Development Authority (PFRDA) said in a release.
NPS can also be used an instrument for wealth creation for retirement and save additional tax on investments up to Rs 50,000.
PFRDA has allowed subscribers under the NPS to make partial withdrawals for the treatment of COVID-19.
Total number of subscribers under the two schemes were around 3.38 crore as of February 22, 2020.
NPS subscribers who have contributed for three years can now withdraw up to 25 percent of the corpus for meeting specified expenses.
In an interview to M Saraswathy, Whole-time Director and CEO Vighnesh Shahane, talks out the company’s plans to expand distribution.
Regulator PFRDA today said funds transferred from provident fund account to National Pension System (NPS) account will not attract any tax.
As per provisions in the Income Tax Act, the amount transferred from recognised PF/superannuation fund to NPS will not be treated as income of the current year and is hence not taxable.
Providing greater flexibility to NPS subscribers both in the individual and corporate segments, PFRDA has allowed them to alter their investment scheme choice and asset allocation twice in a financial year instead of once at present.
Pension Fund Regulatory and Development Authority (PFRDA) said that they are looking to have a systematic withdrawal plan for National Pension System (NPS) wherein individuals will have an option to have between 15-20 years where they can withdraw a fixed sum from their pension fund.
As a consultant you are required to pay a flat 10 per cent tax on income while an employee is taxed as per applicable slab, the highest being 30 per cent along with surcharge.
The entry of the second CRA has led to a lowering of the fees. NPS also has low fund management charges and offers the option of investing in schemes that have high equity component to generate good returns.
Experts feel NPS continues to be a good retiral product for the salaried segment since it is market-linked and professionally managed.
The amendment brings about parity in tax treatment between salaried and non-salaried self-employed persons.